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Investment Diversification: Identifying the Leading Indicators in Emerging Markets

02/12/2015 03:50 am ET | Updated Apr 13, 2015

There's no doubt about it. We are in a global economy, and to try and ignore that reality would be tantamount to sticking one's head in the sand, like an ostrich, and try to pretend the rules of the world doesn't apply to us.

The instabilities of economic influences, from union and guild issues in middle Europe, to weather concerns in the Ring of Fire, to stockholder doubts in the good old America, all point to a very serious consideration every investor should be mindful of every day - diversification.

Here are some important points to suggest the tremors in the marketplace, and how to take advantage of the changes.

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  • Investment in China is volatile, as China's economy falters to the lowest rate in 24 years
  • Russia's continued interference in Ukrainian affairs are casting doubts on their business affairs
  • Brazil is falling victim to a resurgence in stagflation - (Bloomberg)

Diversity in investment, whether local or international, stocks, bonds, or funds, means choosing from the nearly infinite number of resources a broad enough selection of alternatives to provide stability, but a mobile enough set of options to take advantage of the rapidly-changing investment arena.

What's the best way to make these decisions? Perhaps the greatest question ever asked.

But here are some recommendations about how to become sufficiently informed to make the decisions that will not only keep your investments safe and solvent, but help you take the right course for your own investment strategy.

  1. Become informed
  2. A vast majority of the information concerning investments are regulated by the SEC and other international banking authorities. Investing in learning through news sources like Bloomberg or Forbes may be one set of resources; WSJ and other business resources also provide not only good investment data, but quality research and opinion articles to provide the most up-do-date information available.

  3. Become involved
  4. One can choose to be ignorant, trusting others to make the right decisions for them if they are not savvy, or are too busy to otherwise manage their finances. There are companies, however, where you can partner with their investment teams, and build your own portfolio.

    Companies like TD Ameritrade offer investing processes that let you have a hand in guiding your own financial future, including personal training, investing advice, even access to market tools and more and take your involvement one step further by comparing investment opportunities with companies like iFOREX to have total control over one's investments.

  5. Become invested
  6. Putting your own hand to the tiller, guiding your own investment portfolio gives you the greatest control possible on your assets, your resources, and your future. By making the move to personal investment, you allow your own research and your vested desire to succeed become the powerhouse.

    Organizations like Motley Fool or iFOREX give you access to emerging markets in places that are dynamic and desirous of explosive growth, unhindered by political upheaval and citizenry in strife.

So consider your investment portfolio in light of countries beyond the G7, the G20, and consider how great advancement can be had building the future across your whole portfolio, expanding your diversification, increasing your stability, and giving yourself the opportunities that others overlook.

Got a great idea about where to invest next? Want to share a trade story that inspires?

Share your insights on the marketplace, or your questions about the power of diversification below.